04 February 2022
Corporate News

Strong free cash flow generation and debt repayment of Rs 17,376 crores in the first nine months of the financial year

Tata Steel background

Highlights:

 

  • Consolidated Revenues at Rs 60,783 crores were broadly stable on QoQ basis as improvement in net realisations more than offset the drop in volumes.
  • Consolidated EBITDA stood at Rs.15,853 crores while Profit after tax stood at Rs 9,598 crores.
  • Consolidated Free Cash Flow was Rs.6,338 crores during 3QFY22 despite an increase in working capital of Rs.2,045 crores. On 9MFY22 basis, Tata Steel generated free cash flow of Rs 13,214 crores.
  • The company has spent Rs.2,790 crores on capex during the quarter. Work on the Pellet plant, the Cold Roll Mill complex and the 5 MTPA expansion at Kalinganagar is ongoing.
  • Gross debt decreased to Rs.72,603 crores with repayments of Rs.17,376 crores in 9MFY22. Net debt declined to Rs.62,869 crores. Net debt to EBITDA improved to below 1; Net debt to equity improved to 0.68x.
  • Tata Steel Long Products, a subsidiary of Tata Steel, has been announced as the winner of the bidding process to acquire 93.71% stake in the 1 million ton per annum Neelachal Ispat Nigam Limited
     

§  India1 operations –

o   Crude steel production increased by 2% QoQ and 4% YoY to 4.81 mn tons.

o   Domestic deliveries increased by 2% QoQ. Sales volume to Automotive segment remained steady QoQ despite 9% drop in Auto OEM production due to semiconductor shortages.

o   Quarterly adjusted EBITDA stood at Rs.12,434 crores and Profit after tax stood at Rs.7,787 crores.

 

§  Europe operations:

o   Revenues increased by 7% QoQ and 56%YoY to £2,246 million in 3QFY22.

o   EBITDA was £290 million which translates to an EBITDA per ton of £134.

  • In yet another step towards reducing carbon emissions, Tata Steel is conducting trials to inject Coal Bed Methane gas into a blast furnace to reduce coke consumption during steelmaking. The trial will also provide useful insights regarding operation of blast furnaces with hydrogen-based injectants
  • The merger of Tata Steel BSL with Tata Steel has been completed.
     

Financial Highlights:

Key Profit & Loss account items (All figures are in Rs. Crores unless stated otherwise)

India1,2,3

Consolidated2,3,4

3QFY22

2QFY22

3QFY21

3QFY22

2QFY22

3QFY21

Production (mn ton)5

4.81

4.73

4.60

7.76

7.77

7.74